Align Technology, Inc.

NasdaqGS:ALGN Stock Report

Market Cap: US$17.1b

Align Technology Valuation

Is ALGN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ALGN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ALGN ($229.66) is trading below our estimate of fair value ($320.14)

Significantly Below Fair Value: ALGN is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ALGN?

Key metric: As ALGN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ALGN. This is calculated by dividing ALGN's market cap by their current earnings.
What is ALGN's PE Ratio?
PE Ratio38.8x
EarningsUS$441.57m
Market CapUS$17.14b

Price to Earnings Ratio vs Peers

How does ALGN's PE Ratio compare to its peers?

The above table shows the PE ratio for ALGN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40.2x
SOLV Solventum
17.4x6.0%US$12.5b
COO Cooper Companies
57.3x22.9%US$20.6b
MMSI Merit Medical Systems
50.3x14.2%US$6.0b
HAE Haemonetics
35.7x24.7%US$4.4b
ALGN Align Technology
38.8x17.5%US$17.1b

Price-To-Earnings vs Peers: ALGN is good value based on its Price-To-Earnings Ratio (38.8x) compared to the peer average (40.2x).

Price to Earnings Ratio vs Industry

How does ALGN's PE Ratio compare vs other companies in the US Medical Equipment Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MHUA Meihua International Medical Technologies
1.5xn/aUS$14.04m
PAVM PAVmed
0.7x-77.8%US$10.33m
RTSL Rapid Therapeutic Science Laboratories
0.3xn/aUS$18.99k
UTRS Minerva Surgical
n/an/aUS$8.00
No more companies available in this PE range
ALGN 38.8xIndustry Avg. 37.6xNo. of Companies10PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ALGN is expensive based on its Price-To-Earnings Ratio (38.8x) compared to the US Medical Equipment industry average (37.6x).

Price to Earnings Ratio vs Fair Ratio

What is ALGN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ALGN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio38.8x
Fair PE Ratio37x

Price-To-Earnings vs Fair Ratio: ALGN is expensive based on its Price-To-Earnings Ratio (38.8x) compared to the estimated Fair Price-To-Earnings Ratio (37x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ALGN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$229.66
US$261.24
+13.8%
12.1%US$320.00US$200.00n/a13
Nov ’25US$208.58
US$261.24
+25.2%
12.1%US$320.00US$200.00n/a13
Oct ’25US$245.35
US$287.01
+17.0%
14.1%US$350.00US$215.00n/a13
Sep ’25US$237.22
US$287.01
+21.0%
14.1%US$350.00US$215.00n/a13
Aug ’25US$228.33
US$299.69
+31.3%
13.6%US$353.99US$215.00n/a13
Jul ’25US$238.64
US$333.43
+39.7%
11.8%US$400.00US$250.00n/a14
Jun ’25US$257.21
US$341.64
+32.8%
11.7%US$400.00US$250.00n/a14
May ’25US$284.52
US$336.55
+18.3%
12.0%US$400.00US$250.00n/a15
Apr ’25US$319.65
US$310.15
-3.0%
13.4%US$355.00US$215.00n/a15
Mar ’25US$300.01
US$309.14
+3.0%
13.0%US$350.00US$215.00n/a15
Feb ’25US$273.38
US$308.36
+12.8%
13.3%US$344.00US$215.00n/a14
Jan ’25US$274.00
US$277.58
+1.3%
19.9%US$344.00US$180.00n/a14
Dec ’24US$220.45
US$278.36
+26.3%
19.7%US$378.00US$180.00n/a14
Nov ’24US$183.21
US$278.36
+51.9%
19.7%US$378.00US$180.00US$208.5814
Oct ’24US$305.32
US$393.31
+28.8%
11.7%US$450.00US$270.00US$245.3513
Sep ’24US$374.90
US$393.31
+4.9%
11.7%US$450.00US$270.00US$237.2213
Aug ’24US$376.62
US$385.25
+2.3%
11.2%US$440.00US$270.00US$228.3312
Jul ’24US$353.64
US$354.91
+0.4%
13.9%US$420.00US$225.00US$238.6411
Jun ’24US$297.20
US$354.91
+19.4%
13.9%US$420.00US$225.00US$257.2111
May ’24US$317.33
US$354.91
+11.8%
13.9%US$420.00US$225.00US$284.5211
Apr ’24US$334.14
US$334.27
+0.04%
16.7%US$420.00US$190.00US$319.6511
Mar ’24US$308.53
US$333.70
+8.2%
17.5%US$420.00US$190.00US$300.0110
Feb ’24US$282.53
US$241.00
-14.7%
20.5%US$314.00US$160.00US$273.3810
Jan ’24US$210.90
US$250.00
+18.5%
25.9%US$375.00US$160.00US$274.0011
Dec ’23US$201.77
US$250.00
+23.9%
25.9%US$375.00US$160.00US$220.4511
Nov ’23US$193.06
US$241.90
+25.3%
25.8%US$375.00US$160.00US$183.2110

Analyst Forecast: Target price is less than 20% higher than the current share price.

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